Daniel Yan: If Ethereum ETF is approved, SOL/ETH is the best target.

Kryptanium Capital founder Daniel Yan is bullish on SOL, as he reflects on the trend following the approval of a Bitcoin ETF. He believes that at the time of the ETF approval, the focus should be on shorting the main player ETH, and looks to the potential target SOL for the next approval of a spot ETF.

Why is the approval of Ethereum spot ETF bullish for SOL?

Daniel Yan pointed out that if the Ethereum spot ETF is indeed approved within the next two days, for most people, the mainstream investment target may be to buy ETH, and this is hard to dispute.

However, ETH has already surged nearly 20% in the past 24 hours, while Bitcoin also dropped by -15% in the weeks following its approval on January 10.

He believes a better trade would be to "buy SOL/ETH," which may sound absurd and unpopular, but the reasons for being bullish on SOL include:

1. If the Ethereum spot ETF is approved, SOL could be the next one.

2. ETH/BTC saw a 12% weekly increase after the Bitcoin spot ETF was approved, just as people anticipate for an ETH ETF.

3. This is not a popular trading choice.

Bitcoin ETF approval led to a 12-day decline

According to OKX's ETH/BTC trading pair, ETH surged by nearly 28.04% from January 9 to 12, just before the Bitcoin ETF approval.

However, Bitcoin did not immediately rise after its approval, starting to rise only after January 23 with a -19.17% decline from January 11.

Therefore, Daniel Yan believes that at the moment of ETF approval, the focus should be on shorting the main character ETH and being bullish on the potential target SOL for the next spot ETF approval.

Will ETH repeat its post-halving rally?

Due to the positive news of the Bitcoin ETF and the recovery of SOL, the performance of ETH in the first half of the year has not been so impressive. Andrew Kang, co-founder of Mechanism, even stated that going long on ETHBTC, SOLBTC, or SOLETH has become a better choice than before.

Is Solana SOL the new preferred base currency over ETH and BTC?

However, historical data seems to favor ETH. In 2020, after Bitcoin's third halving in May, ETH/BTC hit a low of 0.016, but then rose steadily, reaching a record high of 0.08 in 2021.

Can ETH repeat history and rebound after the halving? Some institutions and analysts, like Coinbase, are optimistic in their reports.

Coinbase: Bullish on Ethereum fundamentals, ETH expected to outperform the market in the second half of the year